Is It Worth Considering Blue Owl Capital Inc. (NYSE:OWL) For Its Upcoming Dividend?

Blue Owl Capital Inc. (NYSE:OWL) is about to trade ex-dividend in the next four days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. This means that investors who purchase Blue Owl Capital's shares on or after the 23rd of February will not receive the dividend, which will be paid on the 6th of March.

The company's next dividend payment will be US$0.13 per share, on the back of last year when the company paid a total of US$0.52 to shareholders. Last year's total dividend payments show that Blue Owl Capital has a trailing yield of 3.8% on the current share price of $13.52. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to check whether the dividend payments are covered, and if earnings are growing.

Check out our latest analysis for Blue Owl Capital

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Blue Owl Capital reported a loss last year, so it's not great to see that it has continued paying a dividend.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. Blue Owl Capital was unprofitable last year, although, we can see that at least its loss per share reduced by 98% on the previous year.

We do note though, one year is too short a time to be drawing strong conclusions about a company's future growth prospects.

Given that Blue Owl Capital has only been paying a dividend for a year, there's not much of a past history to draw insight from.

We update our analysis on Blue Owl Capital every 24 hours, so you can always get the latest insights on its financial health, here.

The Bottom Line

Is Blue Owl Capital worth buying for its dividend? It's not great to see the company paying a dividend despite being loss-making over the last year. It doesn't appear an outstanding opportunity, but could be worth a closer look.

With that being said, if dividends aren't your biggest concern with Blue Owl Capital, you should know about the other risks facing this business. For example, we've found 1 warning sign for Blue Owl Capital that we recommend you consider before investing in the business.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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